Beginning of the End of the Coup? (Paperback) | Released: 02 Feb 2018

Helga Zepp-LaRouche: William White, the former chief economist of the Bank for International Settlements, who is now in a leading position in the OECD, gave a very interesting interview to Ambrose Evans- Pritchard from the British Daily Telegraph, warning that the next financial crash is inevitable. Now, I think this is absolutely true. We have said it many times, but it's good to hear it from at least one prominent economist. He blames "quantitative easing" for that coming crash, saying that this policy of pumping out money has created a "Catch-22" situation, since the central banks really cannot continue forever with the zero interest rate policy and quantitative easing. There are already very clear global inflationary pressures. That just makes the bubble bigger. The longer you wait, the worse it becomes, until it finally explodes. On the other hand, if they want to end that, which they do-then even the slightest increase in the interest rate could trigger a crash. And White pointed to the fact that there are many fracture points in the global financial system. He said in effect that the crash is inevitable. Now that is obviously a subject which is so grave that it deserves full attention at the Davos World Economic Forum, because somewhere around 2,500 to 3,000 top bankers, government officials, and corporate CEOs, are there. You would think that they would have to come up with solutions. But the speeches made so far-including German Chancellor Merkel, Indian Prime Minister Modi, and French President Macron-all said various things, but nothing to address this fundamental question. The one exception was the Chinese representative Liu He, a key advisor to President Xi Jinping and a new member of the Political Bureau. He is said to be probably the most influential advisor to Xi Jinping concerning the structural reforms inside China and gave a decent speech warning of the problems in the financial system. In German, there is a proverb which goes "ausser Spesen nichts gewesen"; I don't know if this exists in English, but it means that other than a lot of bills to be paid, nothing much is coming out of this Davos meeting. So, I think the problems really remain, and unless Trump, who is supposed to speak tomorrow, makes a miracle speech-which I don't think is to be expected- this meeting will come to an end without solving the urgent financial crisis. And just to add to the insanity of this, you have socalled economists like Professor Kenneth Rogoff from Harvard, who says "Yes, the next financial crisis will be centered in China and China will be the trigger point." Nothing could be further from the truth. The Chinese economy is the only sound one, it's unbelievably efficient- it's quick, it's modern, it moves with speed, it's pulling other countries into the Belt and Road Initiative- so it's the only sound, real economic dynamic on the planet. It just shows you that the blame-game is on, but the willingness to go to the root of the problem, which would require Glass-Steagall and a Hamiltonian banking system that we have been organizing for-was missing.